Sector Deals of the Week—PDC Brands Finds New Private Partner in CVC Capital Partners to Continue Acquisitions in Beauty Care

CVC Capital Partners (CVC) announced the acquisition of PDC Brands (PDC), a rapidly growing beauty and personal care products platform with a portfolio of category-leading mass market brands, from Yellow Wood Partners. PDC was acquired by Yellow Wood in September 2012 to serve as a beauty care platform in the mass market channel. Since partnering with Yellow Wood, PDC has acquired five companies and nine brands including Original Additions, Calgon, Dr. Teal’s, Cantu and Bodycology. Today, PDC consists of a portfolio of brands across the hair care, color cosmetics, fragrance, nail care and bath and body care categories. The company sells to major mass, drug, grocery and specialty retailers in the U.S. and internationally.

According to industry sources, PDC generated approximately $450 million in revenue and $110 million in EBITDA in 2016. With assumed double-digit growth in 2017, the rumored purchase price of around $1.5 billion implies a revenue multiple over 3x and an EBITDA multiple of 12x to 13x. Under CVC, the company plans to continue its current strategy of organic growth and add-on acquisitions.